Product Costing
Introduction
Standard Product costing is used by manufacturing companies to calculate the estimated cost of making a finished product.
It starts with entering the finished product information in terms of product details and possibly preferred batch size then adding the estimated labour and material to make that finished product. Once entered the estimated cost of the Standard product is automatically calculated.
Standard Product costing is used by manufacturing companies to calculate the estimated cost of making a finished product.
It starts with entering the finished product information in terms of product details and possibly preferred batch size then adding the estimated labour and material to make that finished product. Once entered the estimated cost of the Standard product is automatically calculated.
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Process Detail
Add a Finished product including an ideal batch size if required -Click here
Add the estimated material requirement in the Bill of Material - Click here
Add the estimated labour time in the product routing. Click Here
Review estimated cost -Click here
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Select the Menu PRODUCT COSTING and this screen will appear. It shows a list of finished products and allows the user to create a Material and labour cost for product.
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Select the required finished product.
Note to help select the required product you can filter in the filter section at the top of the column or sort a column by clicking on the heading
Note to help select the required product you can filter in the filter section at the top of the column or sort a column by clicking on the heading
To define the materials required to produce this product you have to create a Bill of Material for the finished product.This will automatically create a material cost for that Finished Product. The material cost for each Raw Material product can be defined as Last purchase price, standard cost, average cost Etc. For full details of the product costing and how to change it Click Here
- Click ‘View’ under ‘Create BOM Items’ column you will see following screen, for more detail about this screen please see section Adding Bills of material
As products are added / changed the estimated material cost of the finished product is automatically changed with the latest cost of the raw material
How to add estimated labour cost
- press ‘View’ under ‘Create Routing’ column you will see following screen, for more detail about this screen please see Adding Product Routing section
Add the stages the product should go through to be made and the appropriate labour times and the resource or machine as required.
The estimated labour cost is re calculated as information is changed here
The estimated labour cost is re calculated as information is changed here
